The five metros with the highest startup activity in the 2016 index were Austin, Miami, Los Angeles, San Francisco and Las Vegas. Austin ranked at the top spot in 2015 also.
San Antonio was listed as a metro area that experienced the biggest negative shift going from seventh in 2015 to 13th in 2016, according to the Kauffman report.
To rank metro areas, the Kauffman Index of Startup activity looks at new business creation including the rate of new entrepreneurs in a location, the opportunity share of new entrepreneurs, calculated as the percentage of new entrepreneurs driven primarily by opportunity vs. necessity and startup density.
And the good news is most U.S. states and metro areas are experiencing higher rates of new business creation, following the national trend, according to 2016 Kauffman Index of Startup Activity State and Metro Trends data released this week by the Ewing Marion Kauffman Foundation.
“The startup numbers for states and metro areas dovetail with the national Startup Activity Index report, which showed entrepreneurship recovering from the Great Recession slump,” Arnobio Morelix, senior research analyst at the Kauffman Foundation, said in a news release. “While there is considerable variation from one locale to the next, the aggregate data bodes well for business startup activity around the country.”
Among the 25 largest states by population, the five states with the highest startup activity in the 2016 Index were Texas, Florida, California, New York and Colorado. In particular, Texas went from the third spot in 2015 to the number one spot in 2016 for startups.